Solar battery storage company Electriq Power Holdings Inc said on Monday it would go public through a merger with blank-check firm TLG Acquisition One Corp, in a deal valuing the combined company at $495 million.
The deal, expected to close during the first half of 2023, will provide Electriq with up to $125 million of capital through a combination of debt and equity.
Electriq also said it was in advanced talks for up to $60 million of capital from an institutional investor, a personal convertible debt commitment of up to $8.5 million from TLG Chief Executive Mike Lawrie, and other convertible debt to be raised before the deal closes.
The combined company is seeking an NYSE listing under the symbol “ELIQ”.
Special purpose acquisition companies (SPAC) such as TLG help existing companies go public through a merger or to raise capital through an initial public offering.
Once Wall Street’s hottest ticket, SPACs have also seen souring sentiment due to the poor stock performance of companies that merged with them. The De-SPAC Index, which tracks some of these companies, is down 66% so far this year.
“Our proposed merger comes at the right time to address the rapidly growing demand in the residential solar energy storage market, technology development and innovation, consumer and provider demand, and government policy and environmental initiatives,” TLG CEO Lawrie said.
Source: Reuters.com